Continuing with my new protocol, here I’m going to share content I consumed and learned from. This week, I spent time doing general learning about a variety of topics.

What I consumed this week and what I learned from it:

• How AppLovin CEO values his company: free cash flow minus stock-based compensation – YouTube interview with AppLovin CEO Adam Foroughi. I’ve been listening to different perspectives on how to account for stock-based compensation (see here). Foroughi shares an interesting perspective on why he thinks cash flow minus stock-based compensation is the best way to value a company. He also discusses his historic $6 billion stock buyback, which created $50 billion in value, and why his stock fell by 92% in 2022.
• How a billionaire runs his life with AI agents – YouTube interview with Andrew Wilkinson on how he uses AI agents to run his personal and professional life, including his health and his family office. Interesting details on the vertical SaaS app for psychological screening that he vibe-coded.
• Run toward ugly and misunderstood stuff – YouTube interview with Matt Schrager of TD Quant. Schrager explains his views on the best opportunities lying in messy or misunderstood opportunities. Those opportunities tend to have more upside potential because there’s more inefficiency. This reminds me of how Warren Buffett and Ed Thorp generated outsize returns, early in their investing career, in inefficient and misunderstood markets.

That’s what I learned from what I consumed last week.